Vend Marketplaces ASA

Earnings Release • Oct 25, 2019

Schibsted ASA (SCHA/SCHB) - Interim Financial Statement Q3 2019

Schibsted ASA (SCHA/SCHB) - Interim Financial Statement Q3 2019

Today, Schibsted Media Group released its Q3 2019 report.

Highlights of the quarter:

* Nordic Marketplaces: Accelerated revenue growth, solid margins. Revenues in

Norway +11 percent, Sweden +7 percent

* News Media: Solid growth in digital subscription revenues, reduced

advertising revenues in Aftonbladet and VG

* Financial Services: Continued stable growth in Sweden, Norway is levelling

out after a period of revenue decline

* Growth: Strong growth in Distribution, softer development in Prisjakt

* 18 percent EBITDA margin: Positive development in Nordic Marketplaces only

partly offsetting margin decline in News Media and the effect of Lendo

international expansion

* Adevinta revenues +15 percent (in EUR) and EBITDA margin +5 percent to 31

percent

* Share buybacks to continue after the Q3 report

Commenting on the report, CEO Kristin Skogen Lund says: "Schibsted continued the

good development within our key strategic focus areas in Q3, contributing to 6

percent growth in operating revenues for the Group this quarter, including

Adevinta. Group EBITDA reached NOK 1,045 million. Excluding Adevinta EBITDA was

NOK 542 million. Online revenues from our Nordic operations continues to grow,

increasing 4 percent in Q3."

"Nordic Marketplaces grew 9 percent compared to last year. Finn in Norway

delivered double digit revenue growth driven by the jobs and car verticals and

display advertising, combined with margin improvement. Blocket in Sweden

increased their growth momentum driven by revenues from the professional cars

segment," Skogen Lund says.

"Schibsted's News Media operations had a somewhat more mixed performance in Q3.

Digital subscription revenues continue to grow at a high phase. Digital

advertising revenues though had a weak development in Q3, hampering operating

margins. As in previous quarters this is primarily due to reduced digital

advertising revenues in Aftonbladet as a result of the strong market contraction

following the regulatory tightening of the gaming industry in Sweden. In Q3 we

also experienced declining digital advertising revenues in VG in Norway in a

competitive market. We will follow up the cost development in News Media closely

going forward in order to address the negative margin effects of the revenue

development we currently are facing," CEO Kristin Skogen Lund says.

"Our Financial services segment regained its growth momentum in Q3. Lendo Sweden

continued to grow double-digit, the revenue level in Lendo Norway was at a more

stable level on a month by month basis and the geographic roll-out in Denmark is

getting traction. Our newly launched operations in Poland and Austria have a

slower development," Skogen Lund says.

Within Schibsted's Growth portfolio, the distribution business continues to show

strong revenue growth. "This is driven by the launch of new and innovative

products and tech solutions supporting the strong megatrend of growth within

ecommerce, the last being the launch of our new subscription-based delivery

service Svosj. Prisjakt though had a flattening revenue development and reduced

margin performance in Q3, influenced by reduced user engagement," CEO Kristin

Skogen Lund says.

Adevinta continues its strong development with revenues growing 15 percent

measured in EUR in Q3, combined with margin improvements primarily driven by

their French and Global Market operations.

"Schibsted is presently in a strong financial position. We will stay disciplined

in terms of capital allocation and keep an optimal capital structure over time

as previously communicated. We will seek to deploy capital into selected value

creating M&A and other growth opportunities primarily close to our core

businesses when opportunities arise. Schibsted will continue its previously

communicated share buyback program into Q4 in order to reach the 2 percent

target for buybacks," Kristin Skogen Lund says.

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Third quarter     Year to date

(NOK million) 2019 2018 Change   2019 2018

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Schibsted Group excl. Adevinta

Operating revenues 3,032 3,008 1%   9,337 9,236

- of which online revenues 1,844 1,769 4%   5,645 5,423

EBITDA 542 511 6%   1,517 1,364

EBITDA margin 18% 17%     16% 15%

EBITDA excl. IFRS 16 457 511 -11%   1,262 1,364

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Schibsted Group incl. Adevinta

Operating revenues 4,600 4,358 6%   13,974 13,317

EBITDA 1,045 865 21%   2,961 2,371

EBITDA margin 23% 20%     21% 18%

EBITDA excl. IFRS 16 926 865 7%   2,604 2,371

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Schibsted invites to an analyst and press conference at Akersgata 55, Oslo, 25

October 2019 at 09:00 CET. The presentation will be held in English and

transmitted

live as a video webcast on https://www.schibsted.com/ir/. CEO Kristin Skogen

Lund and CFO Ragnar Kårhus will present at the analyst and press conference.

A conference call with Q&A linked to the Q3 2019 numbers will take place 25

October 2019 at 14:00 CET. The session will be held in English.

NOTE: To avoid waiting time when connecting to the call, please use the below

link 5-10 minutes prior to start time, where you will be asked to type in your

phone number and registration details. The Event Conferencing system will

automatically call you back on the phone number you provide and place you into

the event. Please note that the link will become active 15 minutes prior to the

event: Link to join call: https://bit.ly/2MhnakV

For manual dial-in, use the following number (note that this connection might

take more time): +47

2350 2008. Passcode: 851733. For additional phone numbers, please visit

https://www.schibsted.com/ir/.

A recording of the conference call will be made available at

https://www.schibsted.com/ir/.

Contact persons:

Ragnar Kårhus, CFO. Tel: +47 917 917 52

Jo Christian Steigedal, Head of IR. Tel: +47 415 08 733

Oslo, 25 October 2019

SCHIBSTED ASA

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act